TORONTO, ONTARIO--(Marketwired - April 6, 2015) - Victory Nickel Inc. ("Victory Nickel" or the "Company") (TSX:NI) today announced that Corazon Mining Ltd. ("Corazon") has issued 40,000,000 Corazon shares to Victory Nickel as part of the terms of the agreement between the two companies covering the Lynn Lake nickel project in northern Manitoba. Corazon's shares are listed on the Australian Stock Exchange under the symbol CZN and have traded in the range of A$0.004 and A$0.014 per share during the past year.
Also under the agreement, Victory Nickel retains a 1.5% net smelter return royalty on any production from the claims and leases transferred by Victory Nickel to Corazon, 1% of which can be purchased by Corazon for A$1M. Corazon must spend A$3.5M in exploration and resource development over five years upon execution of the agreement - should Corazon fail to make the expenditures, the difference between the expenditure requirement and the actual expenditures must be paid to Victory Nickel in cash or shares of Corazon, or the project is returned to Victory Nickel. Within 30 days of the commencement of commercial ore processing at Lynn Lake, Corazon is required to make a payment of A$1M in cash and/or shares of Corazon to Victory Nickel.
The Lynn Lake Project is located in the historic mining town of Lynn Lake in northern Manitoba, about 320 kilometres by road northwest of the Thompson mining camp. The property is the former Sherritt Gordon Mines Limited mine site known as the Lynn Lake A Mine and Farley Mine, comprised of leases and claims covering an area of 590 hectares. The property was operated by Sherritt Gordon from 1953 to 1976 with reported production of 22.2 million tons at an average grade of 1.023% nickel and 0.535% copper. Victory Nickel acquired the Lynn Lake project, in addition to a royalty on Victory Nickel's Minago Project, through its acquisition of Independent Nickel Corp. which was finalized in January 2009. The project is considered to be a non-core asset by Victory Nickel which also owns the Minago and Mel nickel projects in Manitoba and the Lac Rocher nickel project in Quebec.
About Victory Nickel
Victory Nickel Inc. is a Canadian company with four sulphide nickel deposits containing significant NI 43-101-compliant nickel resources. Victory Nickel is focused on becoming a mid-tier nickel producer by developing its existing properties, Minago, Mel and Lynn Lake in Manitoba, and Lac Rocher in northwestern Québec, and by evaluating opportunities to expand its nickel asset base. Through a wholly-owned subsidiary, Victory Silica Ltd., Victory Nickel has established a presence in the frac sand market prior to commencing frac sand production and sales from Minago.
Please visit the Company's website at www.victorynickel.ca. Should you wish to receive Company news via email, please email [email protected] and specify "Victory Nickel" in the subject line.
Forward-Looking Information: This news release contains forward-looking information. All statements, other than statements of historic fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future constitute forward-looking information. This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: uncertainty of estimates of capital and operating costs, production estimates and estimated economic return; the possibility that actual circumstances will differ from estimates and assumptions; uncertainties relating to the availability and costs of financing needed in the future; failure to establish estimated mineral resources; fluctuations in commodity prices and currency exchange rates; inflation; recoveries being less than those indicated by the testwork carried out to date (there can be no assurance that recoveries in small scale laboratory tests will be duplicated in large tests under on-site conditions or during production); changes in equity markets; operating performance of facilities; environmental and safety risks; delays in obtaining or failure to obtain necessary permits and approvals from government authorities; unavailability of plant, equipment or labour; inability to retain key management and personnel; changes to regulations or policies affecting the Company's activities; the uncertainties involved in interpreting geological data; and the other risks disclosed under the heading "Risk Factors" and elsewhere in the Company's annual information form dated March 31, 2014 filed on SEDAR at www.sedar.com. Forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.